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Last Updated: Tuesday, 19 December 2006, 18:03 GMT
Jobs switch 'has not hit capital'
SNH plaque
The SNH offices were relocated from Edinburgh to Inverness
There is "no evidence" that the relocation of government jobs out of Edinburgh has hit the capital's economy, MSPs have been told.

Scotland's top civil servant, Sir John Elvidge, made the claim during evidence to Holyrood's audit committee.

He said 2,432 posts had left Edinburgh since the Scottish Executive introduced its relocation policy in 1999, with 260 more in the process of moving.

Decisions are to be taken on a further 1,001 posts earmarked for relocation.

The policy was introduced with the aim of spreading the benefits of devolution throughout the country.

We are monitoring the overall impact on the Edinburgh economy and there is no evidence of negative impact
Sir John Elvidge

Since 1999, relocation reviews have taken place at 38 organisations which employ a total of 3,855 people.

Sir John estimated that 96% of the posts had been relocated or been identified for relocation, with 4% remaining in Edinburgh.

He said 162 posts had stayed in the capital as a result of review processes.

Sir John, the permanent secretary at the Scottish Executive, said: "We are monitoring the overall impact on the Edinburgh economy and there is no evidence of negative impact."

Susan Deacon, the Labour MSP for Edinburgh East and Musselburgh, pointed out that 54% of the relocated posts had been moved to Glasgow.

Detrimental impact

"Does it not concern you that the policy that is supposed to deliver benefits to wider parts of Scotland appears not to be spreading these benefits across the country," she asked.

However, Sir John replied: "I'm not sure it is my place to have concerns about the distribution of the posts."

He said that switching jobs to areas with high unemployment was consistent with the overall objectives of the policy.

Margaret Smith, the Liberal Democrat MSP for Edinburgh West, argued that there was a detrimental impact on the area losing the jobs.

She pointed out that there were parts of Edinburgh which were affected by deprivation and poverty.


SEE ALSO
Another five agencies to relocate
12 Dec 06 |  Scotland
Benefits of relocation 'unclear'
21 Sep 06 |  Scotland
Public sector job transfer fears
20 Jun 06 |  Edinburgh and East
Concern over job dispersal policy
15 Feb 06 |  Scotland
MSPs attack relocation policy
25 Jun 04 |  Scotland
Relocation policy is 'bizarre'
13 Jan 04 |  Scotland

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